How safe is blockchain investment?
How safe is blockchain investment? Throughout 2017, the popularity of Blockchain technology has increased sharply. Almost all cryptocurrencies including the biggest Bitcoin followed the trend, where the value of Bitcoin jumped sharply at that time.
Even so, there are still many investors who are hesitant to get directly involved in this industry. Concern about the condition of breaking the Bitcoin price bubble in the future.
Investment Risk in the Crypto Market is a challenge in itself by buying Bitcoin and other alternative cryptocurrencies to invest in Blockchain technology.
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Is cryptocurrency secure?
If we ever join the market Bitcoin and Altcoin, then the risk can reach 100%. This risk arises because of the without of a limit order (Stop Loss) on the investment platform. Moreover, if there is still a negative order (loss), then what can be done by investors is to wait and pray prices to rise.
Or cut loss by selling the crypto.2017 is the year where crypto and blockchain technology become very famous and are considered the year of victory.
Bitcoin skyrockets a 2,000% increase in the year but was followed by a nearly 70% decline in early 2018.
Price volatility with high fluctuations has made many investors take risks to get quick rich. But without taking into account possible loss or congestion due to investment is negative. Let say you buy Bitcoin (BTC) at a price of $ 10,000, in the last few months it turns out your investment will be negative.
One way to earn a profit is to wait while expecting prices to rise above $ 10,000.You might try to add a purchase order with new funds using the averaging technique. Your hope with the averaging is that you wait for the price to rebound at least half of the order.
Then, whether prices continue to decline and only consolidate over the next few years?If this decline occurs it will be inconvenient for investors with a budget that is not too large.. Investor groups from previous generations have high concerns about Blockchain technology carried by cryptocurrency.
Concerns arise because Blockchain will decentralize liquidity from central banks and provide banking access to the masses (public). The emergence of this blockchain of technology could threaten the monopoly that they have mastered so far.
Take advantage of Blockchain Technology
Many people assume that Bitcoin and Blockchain are the same things. No, the two are different, both are very clearly different.
Bitcoin is a digital currency that adopts blockchain technology and is the first crypto from Blockchain. While Blockchain technology is a digital recording system that underlies the use of Bitcoin and other Altcoin.
Some Blockchains are transparency, but some also allow individuals to make transactions anonymously. The benefits of Blockchain can vary, not just for financial transactions. It has other benefits such as supply chain management, information management, and so on.
So this allows the blockchain to be adopted in various industrial sectors. With the various benefits of Blockchain technology, there are certainly many ways to invest in this technology, especially if you are worried about risks in the crypto market which has sharp fluctuations.
Overstock is an online company engaged in its business to sell furniture, property, and family equipment.
Company has begun thinking ahead by starting to adopt Blockchain technology for their platforms. Overstock has created the tZero platform.
The alternative trading system platform regulated by the SEC has become a global platform based on Blockchain. In addition to being used for the sale and purchase of the property. This platform has also grown rapidly and is also a place to receive installments for lenders.
By buying Overstock shares, investors are given a strong exposure to the Blockchain sector without having to have a cryptocurrency. And again not many companies currently have alternative trading systems regulated by the SEC.
Overstock who has entered the Blockchain arena can offer promising opportunities because of its privileges. Global financial analysts, giving projections from even say if the share investment in Overstock can reach more than 400% if tZero is successfully implemented and adopted the mainstream.
The various news and issues we have seen recently, reporting that major credit card vendors in the US such as Visa and MasterCard, no longer support crypto purchase transactions on credit.
This happens because of the concern of the bank if at any time wild fluctuations in the crypto market occur, and consumers cannot pay their credit card bills. It’s true that MasterCard has banned crypto purchases on credit, but the company is still trying to develop Blockchain technology on its internal systems.
They made a patent application in October 2017 for the Blockchain platform.
If they succeed in officially patenting and implementing this Blockchain payment system. Then MasterCard can offer Blockchain-based credit and debit cards to consumers. The development of MasterCard itself has skyrocketed stock increases.
Even MasterCard shares have increased by almost 100% from October 2017 to February 2018 and have not seen a correction at all.
Example company uses blockchain
High Same Opportunity, Safer Risk In addition to the two companies described above, there are still many companies that have begun to adopt Blockchain technology and experience high stock increases. Some examples are:
- IBM has experienced an increase of more than 50% since October 2017.
- Kodak is up 300% since December 2017..
- Nvidia is up more than 400% and still continues bullish. With the massive adoption of world-famous companies, a safe way to invest in Blockchain technology is to buy the company’s shares.
Rather than taking a high-risk investment opportunity in the cryptocurrency market, there have been many individual stocks that we can use as investment grounds.
This is a safe investment method because it is not accompanied by a level of volatility as with crypto assets. While risk factors, the highest returns, and higher risk investments occur in the crypto market.
And a safe way to invest with high returns without extreme risk is in investing in shares in the Blockchain company.
Cryptocurrency security issues
Some of the most vulnerable risks in cryptocurrency investments are hacking. This is a digital currency that is stored on a network. Even though blockchain technology claims to have a high level of security, thieves will always try to find bug loopholes to hack.
And another risk is that not everyone knows and understands this technology, so only those involved in this industry better understand how it works. Certainly different from investing in gold bars, everyone can buy easily in many official gold sales places.
Another risk is the value that changes, the market has made its structure based on demand and supply, if at a saturation point there is no increase in demand, prices may fall quickly as excessive selling.
Remember the 2017 bubble bitcoin event, where prices suddenly fell after the skyrocketing period ended.
In practice, there are indeed many people who are interested in speculative cryptocurrency trading. This is because of the growth of internet users and promotions that so aggressively offer crypto trading through sophisticated trading platforms.
There may already be many cryptocurrency users to make deposits or withdrawals to and from their crypto wallet. Some brokers adopt crypto accounts because they see the opportunity in this industry is huge and potentially profitable in the long run.
Although there is no official legality, there is even a crypto ban, but this has become a shadow market with a large volume.
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